* . *
  • About
  • Advertise
  • Privacy & Policy
  • Contact
Saturday, August 2, 2025
Earth-News
  • Home
  • Business
  • Entertainment
    Chicago Youth Symphony Orchestra takes the Lollapalooza stage – Yahoo Home

    Chicago Youth Symphony Orchestra takes the Lollapalooza stage – Yahoo Home

    Sens. Blackburn, Warnock introduce CREATE Act to provide tax relief to music creators – Yahoo Home

    Sens. Blackburn and Warnock Launch CREATE Act to Deliver Tax Relief for Music Creators

    That’s (Political) Entertainment: When Theatre Meets Politics

    Future Script: How Generative AI Is Changing Collective Bargaining in the Entertainment Industry – Jackson Lewis

    Future Script: How Generative AI Is Transforming Collective Bargaining in Entertainment

    The SBA’s live-entertainment bailout was supposed to end two years ago. We still don’t know how $1.5 billion was spent. – Yahoo Home

    $1.5 Billion Live-Entertainment Bailout: Two Years Later, Where Did the Money Go?

    Wall Street Bets: Caesars, Golden Entertainment, Churchill Downs, GLPI, Boyd – CDC Gaming

    Top Wall Street Bets: Caesars, Golden Entertainment, Churchill Downs, GLPI, and Boyd Take Center Stage

  • General
  • Health
  • News

    Cracking the Code: Why China’s Economic Challenges Aren’t Shaking Markets, Unlike America’s” – Bloomberg

    Trump’s Narrow Window to Spread the Truth About Harris

    Trump’s Narrow Window to Spread the Truth About Harris

    Israel-Gaza war live updates: Hamas leader Ismail Haniyeh assassinated in Iran, group says

    Israel-Gaza war live updates: Hamas leader Ismail Haniyeh assassinated in Iran, group says

    PAP Boss to Niger Delta Youths, Stay Away from the Protest

    PAP Boss to Niger Delta Youths, Stay Away from the Protest

    Court Restricts Protests In Lagos To Freedom, Peace Park

    Court Restricts Protests In Lagos To Freedom, Peace Park

    Fans React to Jazz Jennings’ Inspiring Weight Loss Journey

    Fans React to Jazz Jennings’ Inspiring Weight Loss Journey

    Trending Tags

    • Trump Inauguration
    • United Stated
    • White House
    • Market Stories
    • Election Results
  • Science
  • Sports
  • Technology
    Emory orthopaedic surgeons use robotic technology to transform knee replacement surgery – Emory News Center

    How Robotic Technology is Revolutionizing Knee Replacement Surgery

    Cognizant Technology Solutions Corp (CTSH) Q2 2025 Earnings Call Highlights: Strong Revenue … – Yahoo.co

    Cognizant Q2 2025 Earnings: Impressive Revenue Growth and Key Takeaways

    Revving Up The U.S. Technology Engine – Forbes

    Revving Up The U.S. Technology Engine – Forbes

    More than just a hockey player – Rochester Institute of Technology Athletics

    Beyond the Ice: The Inspiring Journey of a Remarkable Athlete from Rochester Institute of Technology

    Smart Logistics in Warehousing – From Legacy Protocols to Green IoT – How Technology Is Reshaping the Sustainable Supply Chain – Logistics Viewpoints –

    Smart Logistics in Warehousing – From Legacy Protocols to Green IoT – How Technology Is Reshaping the Sustainable Supply Chain – Logistics Viewpoints –

    AI’s race in the dark with China – Axios

    The High-Stakes AI Race: Innovation and Competition in the Shadows

    Trending Tags

    • Nintendo Switch
    • CES 2017
    • Playstation 4 Pro
    • Mark Zuckerberg
No Result
View All Result
  • Home
  • Business
  • Entertainment
    Chicago Youth Symphony Orchestra takes the Lollapalooza stage – Yahoo Home

    Chicago Youth Symphony Orchestra takes the Lollapalooza stage – Yahoo Home

    Sens. Blackburn, Warnock introduce CREATE Act to provide tax relief to music creators – Yahoo Home

    Sens. Blackburn and Warnock Launch CREATE Act to Deliver Tax Relief for Music Creators

    That’s (Political) Entertainment: When Theatre Meets Politics

    Future Script: How Generative AI Is Changing Collective Bargaining in the Entertainment Industry – Jackson Lewis

    Future Script: How Generative AI Is Transforming Collective Bargaining in Entertainment

    The SBA’s live-entertainment bailout was supposed to end two years ago. We still don’t know how $1.5 billion was spent. – Yahoo Home

    $1.5 Billion Live-Entertainment Bailout: Two Years Later, Where Did the Money Go?

    Wall Street Bets: Caesars, Golden Entertainment, Churchill Downs, GLPI, Boyd – CDC Gaming

    Top Wall Street Bets: Caesars, Golden Entertainment, Churchill Downs, GLPI, and Boyd Take Center Stage

  • General
  • Health
  • News

    Cracking the Code: Why China’s Economic Challenges Aren’t Shaking Markets, Unlike America’s” – Bloomberg

    Trump’s Narrow Window to Spread the Truth About Harris

    Trump’s Narrow Window to Spread the Truth About Harris

    Israel-Gaza war live updates: Hamas leader Ismail Haniyeh assassinated in Iran, group says

    Israel-Gaza war live updates: Hamas leader Ismail Haniyeh assassinated in Iran, group says

    PAP Boss to Niger Delta Youths, Stay Away from the Protest

    PAP Boss to Niger Delta Youths, Stay Away from the Protest

    Court Restricts Protests In Lagos To Freedom, Peace Park

    Court Restricts Protests In Lagos To Freedom, Peace Park

    Fans React to Jazz Jennings’ Inspiring Weight Loss Journey

    Fans React to Jazz Jennings’ Inspiring Weight Loss Journey

    Trending Tags

    • Trump Inauguration
    • United Stated
    • White House
    • Market Stories
    • Election Results
  • Science
  • Sports
  • Technology
    Emory orthopaedic surgeons use robotic technology to transform knee replacement surgery – Emory News Center

    How Robotic Technology is Revolutionizing Knee Replacement Surgery

    Cognizant Technology Solutions Corp (CTSH) Q2 2025 Earnings Call Highlights: Strong Revenue … – Yahoo.co

    Cognizant Q2 2025 Earnings: Impressive Revenue Growth and Key Takeaways

    Revving Up The U.S. Technology Engine – Forbes

    Revving Up The U.S. Technology Engine – Forbes

    More than just a hockey player – Rochester Institute of Technology Athletics

    Beyond the Ice: The Inspiring Journey of a Remarkable Athlete from Rochester Institute of Technology

    Smart Logistics in Warehousing – From Legacy Protocols to Green IoT – How Technology Is Reshaping the Sustainable Supply Chain – Logistics Viewpoints –

    Smart Logistics in Warehousing – From Legacy Protocols to Green IoT – How Technology Is Reshaping the Sustainable Supply Chain – Logistics Viewpoints –

    AI’s race in the dark with China – Axios

    The High-Stakes AI Race: Innovation and Competition in the Shadows

    Trending Tags

    • Nintendo Switch
    • CES 2017
    • Playstation 4 Pro
    • Mark Zuckerberg
No Result
View All Result
Earth-News
No Result
View All Result
Home Business

Explainer-What does Red Sea disruption mean for Europe’s economy?

January 19, 2024
in Business
Explainer-What does Red Sea disruption mean for Europe’s economy?
Share on FacebookShare on Twitter

Explainer-What does Red Sea disruption mean for Europe's economy?
© Reuters. FILE PHOTO: A Houthi fighter stands on the Galaxy Leader cargo ship in the Red Sea in this photo released November 20, 2023. Houthi Military Media/Handout via REUTERS/File Photo

By Mark John

(Reuters) – Weeks of attacks by Iranian-backed Houthi militants on vessels in the Red Sea have disrupted shipping in the Suez Canal, the fastest sea route between Asia and Europe carrying 12% of global container traffic.

For the European economy, already skirting a mild recession as it tries to shake off high inflation, prolonged disruption would be a new risk to its outlook and could derail plans by central banks to start cutting interest rates this year.

Here are some factors that policymakers are considering as they assess the situation and its implications.

WHAT HAS BEEN THE IMPACT ON THE EUROPEAN ECONOMY SO FAR?

In macroeconomic terms, small to negligible. While Germany’s Economy Ministry stressed it was monitoring the situation, it said this week that the only noticeable impact on output so far had been a few cases of stretched delivery times.

Bank of England chief Andrew Bailey concurred, telling a parliamentary hearing it “hasn’t actually had the effect that I sort of feared it might”, while acknowledging the uncertainties remained real.

No impact from the attacks has yet turned up in Europe’s main economic indicators – including December inflation numbers, which ticked up slightly across the region on a mix of largely expected statistical effects, some one-offs and some pressure on prices for services.

That might change – watch next Wednesday’s preliminary PMI readings for activity in European economies in January, and Feb. 1’s first estimate of euro zone inflation for the same month. ECB President Christine Lagarde may well broach the subject in her news conference after next Thursday’s rate-setting meeting.

BUT WHY ISN’T IT FEEDING THROUGH TO THE ECONOMY YET?

The main reason is probably that the global economy as a whole is still performing below par, which means there is plenty of slack in the system.

Take oil prices, the most obvious channel through which Middle East troubles could hit economies in Europe and beyond.

They haven’t taken off yet because, as International Energy Agency executive director Fatih Birol told Reuters this week, supplies are solid and demand growth is slowing.

“I don’t expect a major change in the oil price because we have an ample amount of oil coming in the market,” he said.

German logistics giant DHL said it still had available air freight capacity – not an option for everyone – because the global economy was “not really pumping yet”

This subdued economic picture also makes it harder for companies to pass onto consumers any increases in costs they are encountering, for example by having to re-route around Africa. Many of them have rebuilt margins in the past year and accept they might simply have to suck this one up.

“Our best forecast at the minute is we’re able to absorb the incremental cost that we estimate will come through and still achieve … gross margin improvement,” Poundland owner Pepco Group’s executive chairman Andy Bond told Reuters.

Furniture retailer IKEA even said it would stick to planned price cuts and had the stocks to absorb any supply chain shocks. As long as that remains the case for enough companies, the disruption will not move the dial on consumer price inflation.

SO CAN EUROPEAN POLICYMAKERS SIMPLY LOOK THROUGH THIS?

No – because the longer the disruption goes on for, the more likely it is to take a toll on the wider economic picture, even if gradually.

Using an IMF estimate of the impact of freight cost rises, Oxford Economics in a Jan. 4 note estimated gains in container transport prices would add 0.6 percentage points to inflation in a year’s time. The ECB is expecting euro zone inflation to fall from 5.4% in 2023 to 2.7% this year.

“While this suggests that a sustained closure of the Red Sea wouldn’t prevent inflation from falling, it would slow the speed at which it returns to normal,” Oxford Economics concluded. It did not see this preventing an expected pivot to lower interest rates, however.

At the margins, the Houthi attacks and wider troubles in the Middle East represent one of the “geopolitical risks” that get referred to in the minutes of central bankers’ monetary policy discussions. The fear is of escalation – and that fear itself may feed into the decisions that emerge.

Finally – and we may still be some way off this – there is the possibility the situation will encourage companies to advance plans drawn up after the COVID-19 pandemic disrupted trade for alternative, more predictable supply routes.

That could involve longer but more secure trade paths and “near-shoring” or “re-shoring” to bring production closer to key markets. But whatever options are explored, the likelihood is that they all have one thing in common – higher costs.

(Writing and reporting by Mark John; Editing by Catherine Evans)

>>> Read full article>>>
Copyright for syndicated content belongs to the linked Source : Investing.com – https://www.investing.com/news/economy/explainerwhat-does-red-sea-disruption-mean-for-europes-economy-3277905

Tags: ‘disruptionbusinessExplainer-What
Previous Post

Los Angeles Times plans ‘significant’ layoffs, guild says

Next Post

US bill to avert gov’t shutdown secures enough votes to pass House

Foraging strategy and tree structure as drivers of arboreality and suspensory behaviour in savannah-dwelling chimpanzees – Frontiers

Foraging strategy and tree structure as drivers of arboreality and suspensory behaviour in savannah-dwelling chimpanzees – Frontiers

August 2, 2025
EPA attacks climate science. Here are the facts. – E&E News by POLITICO

EPA Questions Climate Science: Key Insights You Shouldn’t Miss

August 2, 2025
6 science-backed strategies to improve your memory – National Geographic

6 Proven Science-Backed Strategies to Boost Your Memory

August 2, 2025
Trying to keep your brain young? A big new study finds these lifestyle changes help – NPR

Trying to keep your brain young? A big new study finds these lifestyle changes help – NPR

August 2, 2025
2025 World Junior Summer Showcase: 3 things learned on Day 5 – NHL.com

3 Must-Know Highlights from Day 5 of the 2025 World Junior Summer Showcase

August 2, 2025
Economic Reality Bites Trump and His Protectionist Trade Policies – The New Yorker

How Trump’s Protectionist Trade Policies Ended Up Hurting the Global Economy

August 2, 2025
Chicago Youth Symphony Orchestra takes the Lollapalooza stage – Yahoo Home

Chicago Youth Symphony Orchestra takes the Lollapalooza stage – Yahoo Home

August 2, 2025
President Trump Delivers Remarks on Making Health Technology Great Again – The White House (.gov)

President Trump Delivers Remarks on Making Health Technology Great Again – The White House (.gov)

August 2, 2025
Trump’s super PAC in powerful financial position with nearly $200 million on hand – CNN

Trump’s super PAC in powerful financial position with nearly $200 million on hand – CNN

August 2, 2025
It’s time to retire the word ‘technology’ – Financial Times

Why It’s Time to Retire the Word ‘Technology’ for Good

August 2, 2025

Categories

Archives

August 2025
MTWTFSS
 123
45678910
11121314151617
18192021222324
25262728293031
« Jul    
Earth-News.info

The Earth News is an independent English-language daily published Website from all around the World News

Browse by Category

  • Business (20,132)
  • Ecology (750)
  • Economy (775)
  • Entertainment (21,653)
  • General (16,241)
  • Health (9,812)
  • Lifestyle (783)
  • News (22,149)
  • People (776)
  • Politics (784)
  • Science (15,988)
  • Sports (21,270)
  • Technology (15,752)
  • World (758)

Recent News

Foraging strategy and tree structure as drivers of arboreality and suspensory behaviour in savannah-dwelling chimpanzees – Frontiers

Foraging strategy and tree structure as drivers of arboreality and suspensory behaviour in savannah-dwelling chimpanzees – Frontiers

August 2, 2025
EPA attacks climate science. Here are the facts. – E&E News by POLITICO

EPA Questions Climate Science: Key Insights You Shouldn’t Miss

August 2, 2025
  • About
  • Advertise
  • Privacy & Policy
  • Contact

© 2023 earth-news.info

No Result
View All Result

© 2023 earth-news.info

No Result
View All Result

© 2023 earth-news.info

Go to mobile version